US Tech Firms Post Record 24% Profit Margins Amid AI Surge, Outpacing Non-Tech Companies by Wide Margin
US technology companies are achieving record profit margins thanks to advances in artificial intelligence.
Profit margins for Technology, Media, and Telecom stocks have climbed to 24%, doubling from levels seen during the 2022 market downturn, reports The Kobeissi Letter.
These figures sit nearly 10 percentage points above the sector’s long-term average near 15%. Meanwhile, non-technology firms maintain margins around 9%, consistent with their historical norms.
Tech margins now stand about 2.7 times higher than those of the rest of the market.
Current levels remain below the 2007 peak prior to the financial crisis and under the 2021 high.
“The AI Revolution is transforming tech’s profitability.”
The Kobeissi Letter also says that the AI Revolution is fueling a record financing boom in the US.
“US high-grade corporate bond issuance is expected to surge to ~$215 billion in September, the largest September issuance on record.
This is set to surpass the previous September high of ~$205 billion, posted in 2025.
The current estimate is also more than triple the ~$70 billion issued in September 2022.
This follows $145.2 billion of US high-grade bonds issued in August, the highest August total on record, as AI-related data center buildouts continue to fuel corporate borrowing.
US companies have already borrowed more than $410 billion so far in 2026, specifically to fund data centers and other AI-related investments.
Meanwhile, retail investors have purchased more investment-grade bonds this year than in any full year in data going back to 2010.
The AI boom is driving a record corporate borrowing spree.”
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